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GUIDELINES FOR THE ENTR525 BUSINESS

INCUBATION REPORT

Master of Entrepreneurship

Queenstown 2014/2015

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INTRODUCTION ........................................................................................................................... 3

AIMS OF THE COURSE ................................................................................................................. 3

CONTENT OF THE REPORT .......................................................................................................... 4

1. Introduction and Overview .............................................................................................. 4

2. Research Aim and Methodology ...................................................................................... 4

3. Feasibility Study................................................................................................................ 4

4. Business Plan .................................................................................................................... 5

REPORT STRUCTURE .................................................................................................................... 6

1. Executive Summary .......................................................................................................... 6

2. Introduction and Overview .............................................................................................. 6

3. Research Aim and Methodology ...................................................................................... 6

4. Feasibility Study................................................................................................................ 6

5. Business Plan .................................................................................................................... 6

6. Conclusions and Reflection .............................................................................................. 6

7. Overall presentation ........................................................................................................ 7

FORMATTING THE REPORT ......................................................................................................... 7

Lists of tables, figures or other materials ................................................................................ 7

Body of the text ....................................................................................................................... 7

Referencing .............................................................................................................................. 7

Appendices .............................................................................................................................. 8

DISHONEST PRACTICE AND PLAGIARISM .................................................................................... 9

WORKLOAD ............................................................................................................................... 11

SUGGESTED TIMETABLE ............................................................................................................ 11

SUPERVISION ............................................................................................................................. 12

SUBMISSION .............................................................................................................................. 12

CONFIDENTIALITY OF REPORTS ................................................................................................. 13

THE EXAMINATION PROCESS .................................................................................................... 13

THE RESULTS .............................................................................................................................. 13

GRADUATION ............................................................................................................................ 13

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INTRODUCTION Welcome to the final stage in the Master of Entrepreneurship degree. In ENTR525 you are expected to undertake a real-life business incubation project to plan for and assess the feasibility of a new venture. You may conduct the report on your own business or your employer’s business (e.g. if the firm wants to develop an entrepreneurial spin-off or a new market, or restructure or expand in some way). Another option is to carry out a project for an established entrepreneur or business (e.g. one of the firms in the Upstart or Otago Innovation Ltd incubators). It is likely that the financial and other resource requirements will vary according to the type of project. This incubation report is partly an academic exercise and partly a practical exercise. We encourage you to start this report immediately after you finish your optional paper, commencing early will give you a head start and ensure you finish on time. It also makes sense from an educational perspective to start work on your report while you are studying the first six papers. This will allow you to apply what you are learning directly to your report. AIMS OF THE COURSE

To provide a focus – as well as a final academic output – for the Master of Entrepreneurship degree;

Integrate the knowledge and skills that students have learned in their 6 Postgraduate Diploma level papers;

Bridge academic (theoretical) and practical (applied) learning approaches; and

Provide experiences and insights that students can apply to the creation of other business ventures in the future.

Because this is the capstone for a Masters level university program, students will also need to demonstrate a number of broader skills, including:

Ability to think critically (e.g. be able to synthesise, contrast and compare information from different sources and be able to make considered judgments based on this);

Ability to analyse market, financial and other factual information;

Ability to analyse written information in research reports, academic journal articles, text books, websites and other data sources;

Ability to identify and assess new market opportunities;

Ability to think creatively and to initiate and develop innovative solutions;

Ability to think strategically and plan for growth;

Ability to communicate effectively (both orally and in writing);

Ability to network and work in teams;

Ability to motivate and inspire other stakeholders (staff, clients, partners, financial supporters, suppliers and distributors);

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A desire for continuous learning (e.g. now that you have completed the research for this report, what else will you do you need to learn?).

CONTENT OF THE REPORT The main issues that the written report will address can be grouped under four broad sections; Introduction and Overview, Research Aim and Methodology, Feasibility Study, and Business Plan.

1. Introduction, Business Model and Industry Overview

Introduce and describe your business idea. Provide an overview of the industry and

describe your business model.

2. Research Aim and Methodology

Define the problem or critical issue that you want to answer in your market research. Once you have developed a research question(s) you can explain how you are going to collect the required data.

Design your research - this will be a blueprint for conducting the research project and will

detail how the necessary information will be obtained and who it will be obtained from. You

may wish to use both primary, e.g. interviews, focus groups and/or surveys and secondary

sources e.g. published statistics and industry reports. You may also need to access relevant

material (e.g. business models, research frameworks) from more academic sources such as

journal articles or text books in order to conduct your research. Describe how the

information collected will be analysed (the data analysis will be incorporated in the latter

two sections of the report).

Identify and review the relevant academic literature that will be useful to you in

understanding the results of your market research and/or developing your business idea.

For example, it may be useful to explore various approaches to pricing or promotion

strategies, or commercialization strategies, growth strategies. Some other suggestions:

Marketing plans, Risk assessment, Due diligence.

3. Feasibility Study

Discuss the results of your market research in depth. In cases where many questions have been asked, it may be appropriate to put some of the diagrams/tables in the appendix.

Describe the target market segments, why they should adopt the proposed innovations, and the benefits they would derive.

Undertake a competitor analysis.

Assess the market opportunities and threats (conduct a SWOT analysis)

What are the financial projections and tax implications? o Conduct cash flow and break even analyses.

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o Conduct sensitivity analyses (e.g. what happens if costs are greater than expected and/or sales are lower?).

Assess the marketing, financial, ethical and organisational feasibility of the proposed project.

What resources (financial, technical, human) are required to produce, distribute and market the new product/service and/or develop and implement the other innovations successfully?

Who (e.g. clients, staff, distributors, financial supporters, etc) can help to co-create value? What “sweat equity” is available? What support networks and mentors are in place?

What are appropriate sources of investment finance and working capital? How much money do I need to borrow and/or raise through loans and shared equity? How quickly can I pay back any debts?

Is the new venture scalable – are there international growth opportunities?

What is an appropriate exit strategy? In conclusion how feasible is this project and how attractive is it to clients, investors and other stakeholders?

If the study shows the original idea is NOT particularly feasible and/or not as attractive as first assumed, what adaptations or improvements can be made to make the project more feasible and/or attractive?

Note – From an academic point of view, it does not matter if your analysis shows the original idea is not as attractive or feasible as originally thought. The key thing is to reflect on what you have learned from the exercise and to show how you might use this knowledge to improve this project and/or to develop more successful new ventures in the future. You should still complete the next section to demonstrate your ability to complete a business plan, whether or not you intend to proceed with the project beyond this point.

4. Business Plan

Develop an appropriate business plan. The business plan should include:

Detail your strategic vision, objectives and the key competitive and collaborative strategies that you intend to utilise over the next five years in the main body of the report.

Summarise the key Marketing, Human Resources, Operations and Finance tactics that you will implement in a 12 month action plan in the main body of the report.

Summarise the key capital requirements, projected revenues and costs over the next five years. Relevant accounting ratios (e.g. expected ROI, pay-back period) can also be included in the main body of the report.

Other detailed business planning sections that most financial institutions such as banks require can be incorporated as appendices. Summarize in brief your financials from the feasibility analysis section.

Conclude with a contingency analysis.

What assumptions have I made? What are market size, share and growth projections based on? How accurate are my costings? If accurate data is not available for my particular industry, can I use other indicators to make an educated guess?

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o How flexible is the plan? Can strategies and tactics be adapted if competitors act aggressively or customers are lukewarm? What if sales are greater than expected and/or new opportunities arise? What if new strategies emerge?

As a guide you can use a template from New Zealand Trade and Enterprise, one of the major trading banks, or other business planning websites. Cite the source of the planning model you are using or adapting, and the sources for your data.

REPORT STRUCTURE

Please use the following format for your report. The value and approximate length of each

section is indicated.

1. Executive Summary Summarise the key findings and conclusions. (1 page, 2%) Please note the Executive Summary should be followed by a Table of Contents which should, in turn, be followed by the Introduction. 2. Introduction, Business Model and Industry overview

Outline the background to the project; a brief history of the business idea, the business model you are going to use, an overview of the industry, summary of what you are trying to achieve and how the research was carried out; outline of the report. (5 – 7 pages, 10%) 3. Research Aim and Methodology

Describe the nature, focus and scope of the market research you are going to undertake. Discuss the methodology you will use for data collection. Undertake a review of the relevant academic literature that will guide your research Discuss relevant literature, and appropriate theories and models that will help guide your research. (12-15 pages, 20%) 4. Feasibility Study

Describe the critical issues that need to be addressed. Assess the marketing, financial and organisational feasibility of the proposed project. Conclude with how attractive the project is for clients, investors or other stakeholders. (15-20 pages, 35%) 5. Business Plan

Describe the vision, objectives and strategies for the next five years, and tactics to be implemented in the next 12 months. Address resource requirements and financial projections. Conclude with a contingency analysis. (10-15 pages, plus appendices, 25%) 6. Conclusions and Reflection

What are your conclusions? Do you want to continue and develop the project further (e.g. in an incubator)? Can you justify a “go/no go” decision at this stage? Describe what you have learned from the project. Reflect on how you have developed as a person. How can you use the knowledge, skills and experiences gained in future ventures? What further research,

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knowledge, experiences and/or training do you need to succeed in the future? (2-4 pages, 5%) 7. Overall presentation

Your report should be professionally and attractively presented. This means no spelling mistakes or grammatical errors. We encourage you to have your report proof-read by an independent person prior to submission, this is a Masters degree after all and your report deserves it! It should also be referenced correctly using either Harvard, Chicago or APA styles. The newer versions of Word (2007 onwards) facilitates referencing in these styles, check out the References tab. (3%) FORMATTING THE REPORT

The report should be printed on A4 paper, single sided

Include a Table of Contents

1.5 line spacing

Justified text

A 12 pt. serif font, preferably Times Roman

Spiral or strip bound

Harvard, Chicago or APA referencing styles should be used. Lists of tables, figures or other materials If the report contains charts, figures, maps, tables, or other types of materials, each of these should be listed separately on the page or pages immediately following the Table of Contents. A list of charts should appear on one page; a list of figures on the next etc. In format, such lists should follow the general style of the Table of Contents. The number of the item is given at the left-hand margin of the page under the appropriate column heading entitled 'Charts', 'Figures', 'Maps' or 'Tables'. After an interval of three spaces, the number is followed by the title of the item, given exactly as it appears in the text of the report. The number of the page on which the item appears is given at the right-hand margin of the page. Tables, figures etc should be numbered according to their chapter and position in that chapter. Thus figure 2.10 is the tenth figure in Chapter 2. Body of the text The report proper begins with the first page of the first chapter or section. Each chapter or section should represent an important division of the report. Special care should be given to dividing the text into paragraphs and the use of sub-headings to help the reader. Each chapter should have a title identifying the subject contained therein, and it should begin on a new page.

Referencing

We expect your report to be referenced correctly using Harvard, Chicago or APA styles. The new version of Word (2007) facilitates referencing in these styles, check out the References tab. For further advice on referencing we encourage you to purchase “Writing Guidelines for

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Business Students” by Lisa Emerson, Dunmore Press (3rd edition 2000 or a later edition). It is available from the University Bookshop and costs around $25. A full reference list should appear at the end of your project. The references should be arranged alphabetically by the author or in the case of more than one title by the same author; they should be arranged by date or publication. Appendices The purpose of an appendix is to keep the text of the report from being interrupted or cluttered with supplementary materials. Tables that present extensive data, or data of minor or ancillary importance, copies of sample questionnaires, etc, may be included as appendices if they are pertinent to the subject matter of the report and they cannot appropriately be incorporated into the body of the text. Each appendix should start on a separate page. Appendices should appear in the order that they referred to in the text. Whenever possible and appropriate, the source of material in the appendix should be given.

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ENTR 525 Business Incubation Report – Marking schedule Student Name:

A range mark B range mark C range mark D-E range mark Marks

Executive Summary (1-2 pages)

Concise summary of all the key findings and conclusions. Award 1.6-2 marks.

Summarises some of the main findings and conclusions. Award 1.3-1.5 marks.

Limited summary of findings, few conclusions reached. Award 1-1.2 marks.

Inadequate summary of findings, no conclusions reached. Award 0-1 mark.

/2

Introduction, industry overview and business model (5 – 7 pages)

Provides an in-depth background to the project; including a brief history, summary of goals, and how the research was carried out. Provides a detailed industry overview and the business model is clearly explained (showing revenue streams). Award 8-10 marks.

Some background to the project is provided. Some industry overview is provided, and the business model is discussed. Award 6.5-7.9 marks.

Little background to the project is provided. Limited industry overview and the business model is not fully discussed. Award 5-6.4 marks.

Inadequate background to the project. Little or inadequate discussion of the business model and industry overview. Award 0-4.9 marks.

/10

Research Aim and Methodology (12-15 pages)

Full description of the nature, focus and scope of the project. Comprehensive outline of the methodology used for the feasibility study and business plan sections of the report. Strong review of relevant literature and good link to its usefulness for the business idea. Award 16-20 marks.

Some discussion of the nature, focus and scope of the project. Adequate outline of the methodology used for the feasibility study and business plan sections of the report. Good review of the relevant literature. Award 13-15.8 marks.

Minimal description of the nature, focus and scope of the project. Brief outline of the methodology used for the feasibility study and business plan sections of the report. Limited literature review, lacks linkage to the business idea. Award 10-12.9 marks.

Inadequate description of the nature, focus and scope of the project. Inadequate or no outline of the methodology used for the feasibility study and business plan sections of the report. Poor/no literature review. Award 0-9.9 marks.

/20

Feasibility study (15-20 pages)

Provides a full analysis of market research findings. Has undertaken a full competitor analysis. Will include a SWOT analysis. Describes all the critical issues that need to be addressed. Full assessment of the marketing, financial and organisational feasibility of the proposed project. Detailed conclusion of how attractive the

Provides a good analysis of the market research results. Has undertaken a competitor analysis. Should include a SWOT analysis. Describes some of the critical issues that need to be addressed. Some assessment of the marketing, financial and organisational feasibility of the proposed project. Adequate

Provides a good analysis of the market research results. Has undertaken a competitor analysis. Should include a SWOT analysis. Describes some of the critical issues that need to be addressed. Some assessment of the marketing, financial and

Inadequate description of the market research results. Inadequate assessment of the marketing, financial and organisational feasibility of the proposed project. No (or weak) SWOT analysis. Weak competitor analysis. No conclusion of how attractive the project is for clients, investors or other stakeholders.

/35

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project is for clients, investors or other stakeholders. Has shown how theory from the literature review has been used to guide thinking. Award 28-35 marks.

conclusion of how attractive the project is for clients, investors or other stakeholders. Award 22.7-27.9

organisational feasibility of the proposed project. Adequate conclusion of how attractive the project is for clients, investors or other stakeholders. Award 17.5-22.6

Award 0-17.4

Business plan (10-15 pages)

Full description of the vision, objectives and strategies for the next five years, and tactics to be implemented in the next 12 months. Comprehensively addresses resource requirements and financial projections. Award 20-25 marks.

Partial description of the vision, objectives and strategies for the next five years, and tactics to be implemented in the next 12 months. Addresses resource requirements and financial projections. Award 16.3-19.9 marks.

Limited description of the vision, objectives and strategies for the next five years, and tactics to be implemented in the next 12 months. Briefly addresses resource requirements and financial projections. Award 12.5 – 16.2 marks.

Inadequate description of the vision, objectives and strategies for the next five years, and tactics to be implemented in the next 12 months. Does not address resource requirements and financial projections. Award 0-12.4 marks.

/25

Conclusions and Reflection (2-4 pages)

Presents a full justification of the decision reached. Includes a broad description of what the student has learned from the project, including the knowledge, skills and experiences gained. Details further research, knowledge, experiences and/or training the student needs for future success. Award 4-5 marks.

Provides some justification for the decision reached. Some discussion of what the student has learned from the project. Some discussion of further research, knowledge, experiences and/or training the student needs for future success. Award 3.2-4 marks.

Provides limited justification for the decision reached. Includes a sketchy description of what the student has learned from the project. Little or no discussion of further research, knowledge, experiences and/or training the student needs for future success. Award 2.5-3.1 marks.

Provides inadequate or no justification for the decision reached. Inadequate or no discussion of further research, knowledge, experiences and/or training the student needs for future success. Award 0-2.5 marks.

/5

Presentation

Presented attractively, correct Referencing , Spelling, grammar, good structure of the report (including Table of Contents, List of Figures/Tables) Award 2.4-3 marks.

Referencing largely complete, minor misspellings, grammatical errors Award marks. 1.95-2.3 marks.

Inadequate referencing, frequent misspellings, grammatical errors, inappropriate punctuation, inconsistency in fonts Award 1.5-1.9 marks.

Poor presentation, many errors, inadequate referencing. Award 0-1.5 marks.

/3

/100

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DISHONEST PRACTICE AND PLAGIARISM

Students should ensure that all submitted work is their own. Any student found responsible for dishonest practice (e.g. copying the work of others, use of unauthorized material in tests) in relation to any piece of work submitted for assessment shall be subjected to the University’s Dishonest Practice regulations. This may result in various penalties, including forfeiture of marks for the piece of work submitted, a zero grade for the paper, or in extreme cases, exclusion from the University. Plagiarism is a form of dishonest practice. Plagiarism is defined as the copying or paraphrasing another’s work, whether intentionally or through failure to take proper care, and presenting it as one’s own. In practice, this means plagiarism includes any attempt in any piece of submitted work to present as one’s own work, the work of another (whether another student or published authority), details at http://www.otago.ac.nz/study/plagiarism/. Any student found responsible for plagiarism shall be subject to the University’s Dishonest Practice Regulations, refer to http://www.otago.ac.nz/administration/policies/otago003145.html.

WORKLOAD

ENTR525 is the equivalent of a full time course for one semester (60 points). As an approximate guide, you can expect to spend about two hours per week per 3 points for single-semester papers, so for ENTR525 this equates to 40 hours per week. SUGGESTED TIMETABLE According to the Master of Entrepreneurship course regulations, the Incubation Report should be carried over a 5-month period (i.e. one semester) after all seven of the PGDip level papers (411-415, 420, 421) have been completed. This means the work would normally be conducted over the summer break or in the following semester. Officially, the timetable for Dunedin class ENTR525 runs from January to May and for the Queenstown class ENTR525 from July– December (2015 days and dates TBC). The paper is classified as fulltime so is eligible for Study Link. From an educational perspective it makes sense to start work on your report (particularly if it is a new business venture) while you are studying the first six papers. That will allow you to apply what you are learning in these papers in a more direct manner, will enable you to modify and adapt your proposal as a result of new knowledge and skills gained, and/or will enable you to drop an initial proposal that looks like it will not be very feasible and pick up a more attractive

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project for the formal ENTR 525 report. Starting early will also give you a head start and ensure that you finish the project on time. SUPERVISION Your supervisor will be in email contact at the start of the 525 projects to suggest ways of best approaching the project, and supervision options.

SUBMISSION

Start date: Queenstown – July 2015 (day and time TBC) Submission date: Queenstown class – December 2015 (day and time TBC) It is possible to submit before these dates, indeed we encourage you to start work as soon as possible on your 525 report. Please note that extensions to this deadline will only be made in exceptional circumstances and require the written approval of the Pro-Vice-Chancellor of Commerce. We encourage you to contact the Programme Director as soon as possible if you are having problems. Do not leave contacting the Programme Director until near or after the submission date. If the submission deadline is missed and an extension has not been approved you may be awarded a Postgraduate Diploma rather than the Master of Entrepreneurship. Please submit two bound hard copies of your 525, as well as submitting an electronic copy on Blackboard. It is compulsory to submit both the hard copies and the electronic copy. You can deliver the two hard copies by hand, courier or mail. If you are posting your ENTR525 reports they must be postmarked on or before the due date to avoid penalties for lateness. Two bound hard copies of your report should be submitted by one of the following methods:

In person to the Programme Co-ordinator, Centre For Entrepreneurship, Department of Marketing, Level 6, Commerce Building.

By post to the Centre for Entrepreneurship, P.O. Box 56, Dunedin 9054, New Zealand. By courier to the Centre for Entrepreneurship, Department of Marketing, School of

Business, corner of Union and Clyde Sts, Dunedin. Submitting your assignment to blackboard will screen your work through SafeAssign to check for plagiarism. To submit your report to blackboard log on and go to ENTR525 paper. Click on the Assignments tab and you will see a number of assignments. You must submit the final version of ENTR525 to the assignment: “FINAL ENTR525 Business Incubation Report”.

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Submitting a draft assignment will enable you to view the SafeAssign report but it will not be marked. Only assignments submitted to the FINAL assignment will be marked. You can only submit one document to each of these assignments so you need to combine all chapters of your report into one document. If you have trouble with appendices etc then you can just submit the main document and send The Programme Co-ordinator a complete email version of your assignment. CONFIDENTIALITY OF REPORTS Certain aspects of some reports may be sensitive. The University is aware that confidentiality may be a concern. When you submit your report it will only be made available to staff who need to see it as part of the assessment process. Your report will not be made available to any other person unless you have given your permission in writing. THE EXAMINATION PROCESS All 525 reports are assessed by two examiners who are required to prepare a written report. If the examiners’ grades differ by more than a full grade and agreement between the examiners cannot be reached, the Academic Leader will arrange be the third examiner. As per the University of Otago’s general examination procedures at Master’s level, if the 525 report is assessed as not meeting the criteria for the award of the degree, the examiners may recommend to the Academic Leader that it be revised and resubmitted by a specified date (normally not later than six months after notification of the result), or rejected. A candidate shall be permitted to revise and resubmit a report for examination once only. If a revised and resubmitted report is finally accepted, the result shall be either ‘Pass’ or ‘Fail’ (i.e. ungraded) and without eligibility for the award of the degree with Credit or Distinction. The examination process can take up to 6 weeks. THE RESULTS Your result will be submitted to the Student Records Office at the Registry. Once the final result has been approved, the Student Records Office (not the Centre of Entrepreneurship) will inform you in writing of your result. You will receive copies of the examiner’s reports.

GRADUATION

The August ceremony is the main graduation ceremony for the Dunedin class while Queenstown students will generally graduate in May. We encourage you to apply for a graduation ceremony when you begin ENTR525, well before you submit your report. You need to contact the Graduation Office at graduation@otago.ac.nz or on 03 479 8239 to request that

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an application form be sent to you as soon as they become available. Late graduation applications are not accepted. If you prefer to graduate at a later date then contact the Graduation Office or visit the Graduation webpage www.otago.ac.nz/study/graduation for further details. Good luck and work hard!